Auditors can be sued in context of auditors liability when clients or 3rd parties believe that audit opinion was wrong, auditor was neglegent in performning thier job, or professional due care was not exercised in carrying out audit work and this has cost them money but this claim can only be successful when it can be proven that;
– auditors owed 3rd part a duty of care – this is considered based on
– auditors knew or should have known that that reliance will be placed on audit report.
– where its reasonble for reliance to be placed on auditors work.
– where auditor was neglegent in carrying out thier work.
– consequences has been suffered by 3rd party as a result.

the burden of proof lies with 3rd party.

In terms of offenses auditors can commit;

– its an offense punishable by law for auditors to help client conceal money laundering activities.
– where auditors fail to report suspision or knowledge of money laundering to appropriate authority (SOCA)
– where auditors are involved in the act themselves
– tipping off after/before reporting to authorities.